Question 1

How is my energy bill calculated?

Accepted Answer

Your bill is (units used in kWh × unit rate) + (days × daily standing charge), for each fuel. This calculator uses Ofgem's price cap rates for 1 October to 31 December 2026 — electricity 26.32p per kWh plus 54.83p a day, gas 7.97p per kWh plus 29.68p a day (Direct Debit, GB average) — so a typical household using 2,500 kWh of electricity and 9,500 kWh of gas a year pays about £1,724 a year, £143.63 a month.

Question 2

What is the Ofgem price cap?

Accepted Answer

The price cap limits how much suppliers in England, Scotland and Wales can charge per unit of energy and per day (the standing charge) on standard variable tariffs. It does not cap your total bill — the more energy you use, the more you pay. Ofgem reviews it every three months. For 1 October to 31 December 2026 the cap works out at £1,723 a year for a typical Direct Debit household.

Question 3

What is a standing charge?

Accepted Answer

A fixed daily fee you pay to stay connected to the energy network, even if you use no energy at all. Under the Oct–Dec 2026 price cap it averages 54.83p a day for electricity and 29.68p a day for gas — about £308 a year combined before you use a single unit.

Question 4

How much energy does a typical UK home use?

Accepted Answer

Ofgem's Typical Domestic Consumption Values (2026) are: low use 1,600 kWh electricity and 6,000 kWh gas a year (a flat or 1-bed), typical use 2,500 kWh electricity and 9,500 kWh gas (a 2–3 bed home), and high use 3,800 kWh electricity and 14,000 kWh gas (a 4+ bed home). Your own annual usage is printed on your energy bill.

Question 5

Is VAT included in these energy prices?

Accepted Answer

Yes. Ofgem's published rates are the rates that appear on your bill, including VAT where it applies. Domestic energy normally carries 5% VAT — that is the rate included in the gas figures. The Government has temporarily removed VAT from domestic electricity from 1 October 2026 to 31 March 2027, so the electricity figures for this cap period include 0% VAT.

Question 6

Why will my real bill be different?

Accepted Answer

The price cap rates vary by region, and they are different if you pay by standard credit or prepayment instead of Direct Debit. Your supplier's exact rates are on your bill. This calculator uses the GB average Direct Debit rates, so treat the result as a close estimate, not a quote.

Question 7

How can I check the cost between two meter readings?

Accepted Answer

Use our Meter Reading Checker: enter the previous and current readings and the number of days between them. It multiplies the kWh you used by the cap unit rate and adds the standing charge for those days — the same way your supplier builds a bill.

Meter Reading Cost Checker

How to read your meter

Why does the standing charge matter?